Cash bonds take a different track

Is the worst of the credit crunch over? The equity, CDS and cash bond markets give different answers. For most sectors, the equity and CDS markets appear to have priced in a rapid economic recovery and limited defaults. By contrast, the cash bond market sees financial Armageddon at the door. How has this discrepancy come about? And which view is correct?

The equity markets have enjoyed a strong run since early March, with both the FTSE and the Dow Jones gaining as much as 10% from their lows, bef

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